Jake’s 58 Casino Hotel in Islandia, New York, is currently grappling with several state violations for allegedly employing numerous staff members who lacked proper gaming licenses. This situation marks a significant enforcement action by the New York State Gaming Commission.
According to details released on December 15 by the state Gaming Commission in communication with Phil Boyle, CEO of Suffolk Regional Off-Track Betting Corp., the casino had nine employees completely unlicensed and 25 with either expired or incorrect licenses. This revelation came through documents obtained via a Freedom of Information Law request by Newsday.
The requirement for a gaming license is fundamental in maintaining the integrity and legality of casino operations, with the state’s guidelines strictly prohibiting the employment in gaming positions of individuals convicted of felonies or gambling-related misdemeanors. Despite these stringent criteria, the Gaming Commission did not accuse any of Jake’s 58’s employees of further misconduct. However, the situation has raised concerns about the competency of public entities managing gaming facilities compared to private sector companies.
As a consequence of these licensing oversights, Jake’s 58 has been slapped with a $26,000 fine, which translates to $1,000 per non-compliant employee, though this penalty is currently on hold pending an appeal by the casino’s management. Despite the ongoing legal process, the casino has since submitted the necessary licensing paperwork to rectify the employee statuses.
Issues with a Long History
This licensing issue dates back to when the casino was under the management of Delaware North, the original operator of the facility. Phil Boyle stated: “Though we were only recently notified of any issues… questions date back to when Delaware North ran Jake’s 58 Casino Hotel. It is our intention to address them, resolve them and become a statewide model for other casinos to follow regarding gaming license compliance.”
Delaware North, which managed the casino from 2017 to 2021, responded through spokesperson Glen White, asserting that they had received no licensing violations from the Gaming Commission during their tenure. The state’s Gaming Commission spokesperson, Brad Maione, highlighted that while Jake’s 58 management is working to align with compliance requirements, the final decision from the Gaming Commission is still pending.
The critique of government-run casinos was echoed by Assemblyman Michael Fitzpatrick (R-St. James), who argued that private companies like Las Vegas Sands or Bally’s are less likely to commit such oversight errors because they are fundamentally business-oriented.
In contrast, Suffolk OTB has noted an increase in casino revenue since taking over operations from Delaware North. In the fiscal year 2023-24, the casino reported a net revenue of $277.3 million, up from $218.7 million in 2019-20, the last pre-pandemic year under Delaware North.
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